International Journal of Management Science and Information Technology (IJMSIT)
Vol. 6 No. 1 (2026): January - June 2026

KPI-Based Performance Appraisal and Employee Salary Increase Decisions: A Qualitative Study at PT Sucorinvest Asset Management Jakarta

Hilman Hidayat (Institut Bisnis dan Multimedia asmi)
Ratnawati Prayogi (Institut Bisnis dan Multimedia asmi)
Bambang Rismadi (Institut Bisnis dan Multimedia asmi)
Dwi Novita Sari (Institut Bisnis dan Multimedia asmi)



Article Info

Publish Date
17 Jun 2026

Abstract

This study aims to analyze the implementation of Key Performance Indicators (KPI) as a basis for determining employee salary increases at PT Sucorinvest Asset Management, Jakarta. Effective human resource management requires an objective performance measurement system to ensure that employee contributions are aligned with organizational goals and compensation policies. In this context, KPI serves as a strategic tool for measuring employee performance through measurable indicators and supporting managerial decision-making related to remuneration. This study employed a descriptive qualitative approach. Data were collected through in-depth interviews, observations, and documentation involving seven informants representing managerial and operational levels within the organization. Data analysis followed the interactive model of Miles, Huberman, and Saldaña, consisting of data condensation, data display, and conclusion drawing. The findings indicate that the company has implemented a KPI system based on the Balanced Scorecard approach, integrating financial, customer, internal process, and learning and growth perspectives into employee performance evaluation. KPI has been utilized as an important reference for salary increase decisions and performance monitoring. However, several challenges were identified, including inconsistent KPI socialization among employees, limited transparency in the conversion of KPI scores into salary increase percentages, variations in KPI monitoring practices across divisions, and the influence of external business conditions on KPI target achievement. These issues affect employees’ understanding and perceptions of fairness regarding the performance evaluation process. The study concludes that KPI provides a structured framework for performance appraisal and supports more objective salary increase decision-making. The findings highlight the importance of consistent KPI communication, greater transparency in remuneration mechanisms, and adaptive performance targets to enhance the effectiveness of KPI-based performance management systems.

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Journal Info

Abbrev

IJMSIT

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

The development of science related to good technology, information, and communication, both theoretically and empirically has proven to have a positive impact on various aspects of people lives. The development of the science of Information and Communication Technology provides many benefits to ...